Cryptocurrency trading has been a popular type of activity in recent years. The fact is prices of digital assets change rapidly, giving investors many earning opportunities.
Crypto is used for buying goods and services (for example, real estate, Internet shops, booking travel tours and flights, etc.) and investments. The metaverse and blockchain games fields are actively evolving, expanding the application scope for cryptocurrencies.
We dare to say that crypto can replace fiat currencies in the future, but it will take much longer and require the world’s economic evolution. In this article, we will try to compare fiat currencies and crypto.
Fiat Currency vs Cryptocurrency
Here are some crucial differences between traditional and crypto markets:
- The cryptocurrency market is subject to demand and supply. However, it does not depend on governmental decisions, and states cannot control crypto emissions. So we can say cryptocurrencies are independent assets.
- When sending money to a recipient, we used to pay bank commissions. On the contrary, crypto transaction fees are fixed and much cheaper than bank services.
- Unlike bank transfers, crypto transactions are lightning-fast. So you can send money anywhere at another point on the globe in just a few seconds.
What is Fiat in Crypto?
Fiat is used when a user wants to buy a cryptocurrency for the first time. Many credible crypto exchanges (WhiteBIT, Coinbase) allow deposits in fiat currencies directly from users’ bank cards. Similarly, users can convert crypto to fiat and withdraw funds straight to their cards.
Picking the platform for cryptocurrency trading, pay attention to its safety mechanisms and account protection, which is crucial for investments. Also, consider your bank’s fee when working with crypto platforms. For example, Monobank users can deposit funds from their cards to WhiteBIT at zero fees, but other banks charge a commission